Short answer

Your shares may not appear in your holdings after you purchase them if they are short-delivered.

In such a scenario, you face two possible outcomes:

Share delivery on T+2: On T+2 day, you may receive the shares that were previously short-delivered.

Cash settlement: If the exchange cannot acquire the shares on your behalf, your transaction may be settled in cash. In this case, the exchange settles your transaction by providing a cash credit based on the close-out rate.

The exchange determines the close-out rate as the higher of:

Your stock’s highest price from the time of sale to the auction day

20% above the closing price on the auction day (T+1)